Mar 4, 1987
U.S. EEC, PROTECTIONIST MOVES ASSAILED.
GENEVA FEB. 27 (IFDA/CHAKRAVARTHI RAGHAVAN) -- Move in U.S. Congress for new restrictions on textiles and clothing, as well as EEC proposals for tax on vegetable oils were criticised strongly Thursday at the first meeting of the surveillance body on the standstill and rollback commitments in the Uruguay Round, according to GATT sources. The surveillance body is chaired by the GATT Deputy Director-General, Madam G. Mathur. The surveillance body is mandated to examine actions or measures of Contracting Parties (CPS), which have been notified to it by the contracting party concerned or others (cross-notifications) in relation to the commitments to standstill undertaken by Ministers at Punta del Este, as a part of their decision launching to MTNS in goods. The surveillance body itself is not envisaged to give any finding or provides any relief, but merely transmit a record of its proceedings to the next meeting of the trade negotiations committee (TNC) and the group of negotiations on goods (GNG). The TNC, which is to meet at least once in six months, is to carry out a periodic evaluation of implementation of the standstill and rollback commitments, and their impact on the process of negotiations in the Uruguay Round. At Thursday's meeting the U.S. discriminatory levy on imported petroleum and petroleum products, as well as the customs "user-fee" on all imports were reportedly brought up by Mexico, Canada, EEC and others. These tow U.S. actions have also been raised by them as disputes under GATT's normal dispute settlement procedures, and have been referred for adjudication to panels. Participants said that in the light of this, Mexico and Canada played the complaints against the U.S. in the surveillance body in a fairly low key. Hong Kong reportedly raised the bill introduced in the U.S. Congress on February 19 to restrict textiles and clothing imports, and was supported by a number of other third world countries as well as by the EEC. Everyone reportedly acknowledged that this was not an action already taken by the U.S. or a proposed legislative measure of the administration, but one introduced by Congressmen which may or may not become law. However, several participants reportedly made the point that the surveillance body should not merely function on an ex post facto basis on actions already taken, but also as a forum "to hoist early warning signals" in respect of actions proposed that the concerned countries should heed and desist from. The textile bill, they noted, had been introduced after the first meeting on February 13 of the textile negotiating group in the Uruguay Round MTNS in goods. Any such legislation, if enacted, would "engulf and endanger" not only the textile negotiations but also the Uruguay Round itself, several participants warned. The Asian countries are reported to have raised the proposed EEC move to tax vegetable oil imports, and this was supported by several other countries exporting various vegetable oils to the European Community. Japan reportedly referred to the EEC's views on need for everyone to observe standstill, and hoped that the would itself observe this in respect of the various anti-dumpling investigations and moves. This was seen as a reference to the EEC moves to levy such duties on Japanese electronic and other products, produced within EEC in "screw-driver assembly plants" owned by Japanese enterprises and using Japanese components imported at "dumped prices". Participants said that there was no summing up or conclusions from the chairman of the surveillance body, but that the records of discussions would be forwarded to the TNC and the GNG.